THE FUTURE OF RETAIL SHOPPER INNOVATION WINNERS LEAD THE WAY BRANDS BITE INTO FOODIE MAY 2015 • $6.95 CULTURE CANADA POST AGREEMENT NUMBER 40050265 PRINTED IN CANADA USPS AFSM 100 Approved Polywrap CANADA POST AGREEMENT NUMBER 40050265 PRINTED IN USPS AFSM 100 Approved A PUBLICATION OF BRUNICO COMMUNICATIONS LTD. ST.coverMay_15.indd 1 2015-04-13 8:05 PM ADD MORE POWER TO YOUR MARKETING PLAN The new Report on Business is about to redefine business news in Canada. The Globe and Mail has always been Canada’s leader in business journalism, attracting readers who are influencers and executives in their industries. It’s our deep understanding of this enviable audience and the evolving ways in which they consume media that has fuelled the enhancements to Report on Business. This includes more depth, analysis and insight – and the all-new Globe iOS app, which delivers personalized content in a more engaging way. And as readers immerse themselves in the new Report on Business, you’ll benefit from their deeper engagement with your brand. Find out how the new Report on Business can power your next marketing plan. Contact your Globe representative or visit globelink.ca/ROB ST.26391.GlobeAndMail.Ad.indd 1 2015-04-13 4:09 PM San Pellegrino isn't the only brand MAY 2015 VOLUME 26, ISSUE 4 tapping into foodie culture of late. Read about • the others joining the table on p. 12. 12 20 40 The rise of foodies Shopper Innovation Awards Dairy Queen’s 75th Culinary savants are in style, and a few Want to know how to turn consumers How the QSR has kept its cool brands are capitalizing on the trend into customers? These winners while competitors nipped at its will tell you ice-cream heels 4 Editorial Staying relevant in the hyper-digital age • 8 Upfront New strategies from Nike, RW&Co. and Cracker Barrel, plus brands that are jumping on hot new tech • 16 The Pan Am Games are coming to Toronto, and its top marketer is up for the challenge • 18 The next big things in retail may be coming sooner than you think • 46 BCON Expo had everything you need to know about branded content, and we have the photos to prove it • 52 Forum Sheri Pearson on making big in-store bets, and Jason Dubroy on why fl yers deserve a second look • 54 Back page ImageThink imagines a future of retail gone too far ONO THE COVER: There’s nothing more tried-and-true than shopper marketing, right? It’s all about disruptive in- THE sstore displays, eye-catching packaging and discounts – lots and lots of discounts. Alas, if only it were that simple. The FUTURE OF RETAIL truth is, shopper marketing is evolving every day, with e-commerce taking bigger bites out of bricks-and-mortar, hot SHOPPER INNOVATION WINNERS LEAD THE tech and even robots on the horizon. Old shopper marketing is morphing into something new. We asked famed artist WAY Gary Taxali to illustrate its march into the future on this month’s cover. Get ready, because here it comes. BRANDS BITE INTO MAY 2015 t $6.95 FOODIE CULTURE CANADA POST AGREEMENT NUMBER 40050265 PRINTED IN CANADA USPS AFSM 100 Approved Polywrap Approved 100 AFSM USPS CANADA IN PRINTED 40050265 NUMBER AGREEMENT POST CANADA A PUBLICATION OF BRUNICO COMMUNICATIONS LTD. May 2015 3 Contents.May15.indd 3 2015-04-14 1:52 PM may 2015 volume 26, issue 4 How to win at shopper marketing www.strategyonline.ca vp, publisher | mary maddever | [email protected] editor | emily wexler | [email protected] uch has been made in the last few years of new technology that is art director | tim davin | [email protected] M going to change the way we shop. Digital wallets that eliminate the need to carry around cash and credit cards, beacons that send us special projects editor | jennifer horn | [email protected] targeted messages depending on where we are in stores, drones that could put copy chief & writer | tanya kostiw | [email protected] thousands of couriers out of a job, facial recognition technology that knows our news editor | harmeet singh | [email protected] age and gender and can send us relevant ads when we’re waiting in line at the reporter | josh kolm | [email protected] check-out…While all of this already exists, it’s still on the cusp of widespread contributors | jason dubroy | megan haynes | vawn himmelsbach | adoption. The future is (almost, not really) here! val maloney | sheri pearson So while we wait for the future to get here, let’s remind ourselves of what’s associate publisher | lisa faktor | [email protected] really important. This issue is all about shopper marketing – everything to do advertising sales supervisor | neil ewen | [email protected] with the path to purchase and turning consumers into paying customers. account manager | kelly nicholls | [email protected] Want to know the secret to a successful shopper marketing co-ordinator | alex khotsiphom | [email protected] marketing program (at least in my humble opinion)? CORPORATE Make it relevant and make it simple. These two basic president & ceo | russell goldstein | [email protected] requirements are going to become even more important vp & editorial director | mary maddever | [email protected] as we move from the digital age into the hyper-digital vp & publisher, realscreen | claire macdonald | [email protected] age (as I’m choosing to call it). vp & publisher, kidscreen | jocelyn christie | [email protected] I often go to the grocery store after a long day at work. vp administration & finance | linda lovegrove | [email protected] I want to get in and out of there as quickly as possible. I chief information officer | omri tintpulver | [email protected] barely scan the aisles – I go straight for the stuff I already know I like and buy. So if you ask me to download an app production & distribution supervisor | robert lines | [email protected] that is complicated to use, or start sending me a barrage senior manager, audience services | jennifer colvin | [email protected] of information that I don’t ind directly relevant to me, manager, audience services | christine mcnalley | [email protected] I’m going to tune you out. Many of our Shopper Innovation Awards winners got how to reach us Strategy, 366 Adelaide Street West, Suite 100, Toronto, Ontario, Canada M5V 1R9 it right (p. 20). Take Ikea, and its "Quick & Easy Room Tel: (416) 408-2300 or 1-888-BRUNICO (1-888-278-6426) Fax: (416) 408-0870 Makeover," which showed how simple it is to redecorate www.strategyonline.ca using textiles, or Longo's loyalty app which sends customer care To order a subscription, visit www.strategyonline.ca/subscribe. To make a change to an customized offers to a member's smartphone. existing subscription, please contact us by email: [email protected]. In terms of being relevant to an audience, brands are also starting to really Tel: (416) 408-2448 Fax: (416) 408-0249. PO BOX 369 Beeton ON L0G 1A0. understand the virtues of going after niche but highly inluential groups, such as subscription rates STRATEGY is published 12 times per year by Brunico Communications Ltd. foodies (see p. 12). Not everyone is a food connoisseur, but just like in fashion, In Canada: One year CA$80.00 Two years CA $144.00 those on the cutting edge have a trickle-down effect to the masses, and who (HST included. Registration #856051396 RT) Single copy price in Canada is CA$6.95. Please allow four weeks for new subscriptions doesn’t want a piece of that action? and address changes. And when it comes to simplicity, on p. 18 we outline a few shopper marketing copyright and trademark trends, most of which, no surprise, are about making people’s lives easier. STRATEGY and the tagline “Bold vision brand new ideas” are trademarks of Brunico Communications Ltd. All rights reserved. Nothing may be reproduced from STRATEGY in whole Whether it’s delivery services that bring just about anything to your doorstep, or or in part without written permission. Reprint requests should be sent to in-store payments done on your mobile phone (no cashier or bulky and inicky [email protected]. © 2014 Brunico Communications Ltd. scanning machine required), it seems that if you really want to compete in the postmaster notification Canadian Postmaster, send undeliverables and address changes to: Strategy, PO BOX 369, future, you’d better be all about convenience. Beeton ON L0G 1A0 [email protected] U.S. Postmaster, send undeliverables and address changes to: Strategy PO BOX 1103 So go ahead, execute that crazy out-there idea. Make a truck out of ice (like Niagara Falls NY 14304 Printed in Canada. Canada Post Agreement No. 40050265. the SIA Grand Prix winner Canadian Tire) or send a drone to deliver pizza. ISSN: 1187-4309. Experiment with beacons or fast new payment systems. But if it’s not simple and Member of relevant, don’t expect anyone to pay attention. Emily Wexler, editor We acknowledge the fi nancial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage. 4 www.strategyonline.ca EditMasthead.May_15.indd 4 2015-04-14 4:04 PM DIRECT MAIL HELPED RENT FROCK REPEAT LOOK EVEN BETTER. Lisa Delorme CEO, Rent frock Repeat “We saw women bring our direct mail into the showroom in droves and then we saw online traffi c spike 30%.” % THE SITUATION: 30 Rent frock Repeat is an e-commerce business renting designer LIFT IN dresses at a fraction of what they would cost to buy. They wanted to encourage new customers to ONLINE book a private fi tting at their showroom and visit their website.